Creso Pharma (ASX: CPH) this morning announced that it has secured a number of new purchase orders through Canadian provincial cannabis boards. The purchase orders were conducted via the firms Canadian subsidiary, Mernova Medicinal, which continues to see rising demand for its craft cannabis products.
Collectively, the purchase orders amounted to C$242,842, with the orders split among four separate provincial boards. Notably, the orders follow multiple products sold by the company becoming sold out by retailers, while the company has also experienced the first orders of its new Black Mamba cannabis strain.
Purchase orders received by the company include:
- A $94,800 purchase order from Cannabis NB, marking the firms entrance into the province of New Brunswick
- Two purchase orders from the Nova Scotia Liquor Corp for $48,636 and $55,564
- A second purchase order from the Yukon for $43,842, which includes a repeat order from one dispensary, and an initial order from another dispensary
The company highlighted the significance of the initial purchase order from Cannabis NB, whom operates a total of 20 retail locations throughout the province of New Brunswick as well as an online sales platform. Cannabis sales are growing fast in the province, with the three month period ended September 31, 2020 seeing a 23% quarter over quarter increase in sales, which rose to $20.1 million province wide.
The firms Ritual Green brand is now available at all of these retail locations, including online, with a total of three strains currently available. The company has indicated that it expects ongoing orders from the province based on early results.
Additionally, the firm has indicated that it is currently expecting numerous additional purchase orders from retailers across the country for its Ritual Green products following strong demand from consumers.
“To receive our first PO from the Province of New Brunswick, as well as additional POs from the NSLC and the Yukon, is a great way for Mernova to start the year, and shows that 2021 should be promising for us.”
Jack Yu, Managing Director of Mernova
Creso Pharma last traded at $0.21 on the ASX.
FULL DISCLOSURE: Creso Pharma is a client of Canacom Group, the parent company of The Deep Dive. The author has been compensated to cover Creso Pharma on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.
